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PC World and Rentsmart


pcdinosaur

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Having been advised by PC World that Rentsmart was the best option for me, as I near the end of my contract I find that I would advise anyone thinking of using this system to think very hard.
Rentsmart is nothing but a HP agreement where you dont end up owning the eqipment. But have to pay to post it fully insured and properly packaged back to their Manchester address. You are resposable for all repair bills after the warrenty expires.
I was told that at the end of the contarct I could buy the equipment for a nominal fee. this is incorrect they put a value on it which they say is its auction value. Some joke.
They will let you, though I did not, put anything onto this system. Ink cartriges Paper. Secuirity software. all of this is then included in the final end of contract assesment. God help anyone whos bought desks and chairs using this method.
It may be OK for bigger business but they target the smaller ones who are more in need of hanging on to their meagre capital.
Anybody else suffered by their misleading information.

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PalaeoBill

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I can't believe that I am defending them but I can't help myself.
Like anything in business, you need to weigh up the pros and cons. The devil is in the small print but then it always has been. I have had clients that used Rentsmart and knew exactly what they were getting into and why. If I had been able to offer them the kit on HP they would have bought from me.
Schemes like Rentsmart allow you to free up capital for other things. You get the use of a computer for less money than it would cost to buy it and all of the money you pay out to Rentsmart each year can be offset against profit in that year.
If you bought the computer outright, this would not be the case. You would have to treat the computer as an asset and depreciate it over several years. Depending upon how you did this you would get a capital allowance to offset against profit each year. The maximum you would be allowed in year 1 would be 40% of the cost of the computer.
Of course in the long run it will cost you more than if you bought it outright. Rentsmart are in business to make money and the small businesses that need to hang onto meagre capital are precisely who they target.

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wee eddie

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I have not dealt with Rentsmart, but over the years I have both Rented and Leased Equipment. My first Computer(I don't think that the PC had been invented then) set me back over £3000, which became £4,800 over the whole period of the Rental.

Without exception I was able to negotiate a Final Buyout Price, which was roughly equivalent to 1 Months Rental. The same was true of the Leases.

A 3 year old Laptop or PC is worth "zilch" on the open market ~ It is unsaleable ~ Back everything up to an External Hard Drive and threaten to take the lot down to your local TNT Office. ~ Rentsmart really don't want it ~ Believe me.

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pcdinosaur

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Paleao Bill
This is a hindsight thing I know. But if you do the calculations I took out a loan on a van at about the same time, if I had borrowed the extra £800 to pay for the PC and Printer I would have paid far less than the £1330-92 plus the 233-00 that they want for me to keep it or the £30-00 it will cost to send it back fully insured as they state. I am just trying to let others know the pitfals.

wee eddie

Yes I have tried negotiating and I got them down to £176- and they say they wont budge on that. I looked a leaseing the van so I know what you mean about the end bubble price etc. I couldnt afford to lease the van.
For some people Rentsmart may be OK but for one man bands like myself I think when you are fully responsable for the repairs etc which have cost me£135-00 this year the figures dont stack up.
Their leaflet encouages you to buy desks, chairs and filing cabinets etc. how much would it cost to send them back.

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wee eddie

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So ~ Send it back.

The insurance will only cost you a tenner ~ They have told you how much it needs to be insured for.

They think that they have you over a barrel. Call their bluff.

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ajm

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As wee eddie has said, call their bluff. Tell RentSmart to collect the stuff. After all it belongs to them, not you.

also tell them that you want an engineer to come and securely wipe out all your data from the computer as you wish to ensure no personal data is on the machine when it gets "auctioned" off.

They will then poersuade you to buy it at a cheap nominal value - perhaps £30-40 is reasonable.

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Forum Editor

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Perhaps you didn't notice that the thread was posted over two years ago?

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jtt

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"A 3 year old Laptop or PC is worth "zilch" on the open market"

Not sure I agree with that. A 3 year old laptop would probably cost over £200 on Ebay.

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jtt

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Just realised that the comment I replied to is over two years old. Even so, back then, a three year old laptop, which is now a five year old laptop, would have sold well on Ebay. Possibly for £300, I can't remember the prices back then.

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James Turner

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PC World are paid a commission by RentSmart to sell RentSmart's rental contracts to small business owners.

PC World staff are trained by RentSmart representatives. Either way, do NOT sign any paperwork...take it away, read it...and if you don't like it...don't sign it!

BUY...NEVER be SOLD!

RentSmart's rental contract mean that you (the business owner) pay FOR THE USE of a PC, over a fixed term - usually 36 or 48 months. RentSmart is the owner of the PC.

This is similar to rental payments for a fixed telephone landline...except unlike a landline, a business PC is usually outdated/obsolete within 24 months!

If you need to upgrade to a new PC after say 24 months; under a 36 month rental contract, you must stll 'pay out' the remainder of the contract i.e. 12 months. Alternatively, RentSmart MAY agree that you can upgrade to a new PC...but be assured it WILL COST YOU!

Take my advice. Never pay for a PC via rental. Only use cash (or if absolutely neccesary a bank loan), which means YOU own the PC and can upgrade to a new PC when YOU like.

You still receive tax benefits if you pay cash or take out a bank loan...and you own the PC. When you're ready you can sell your PC...ebay is an obvious choice and use the proceeds towards your new PC!

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wee eddie

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Leasing is a very good way of keeping expenditure in the Trading Account. Many Small Traders do not have sufficient Capital to make a Cash Purchase.

I can't imagine why you imagine that a Finance Company should operate their service for free. They are a Business in very much the same way as you are. They offer a service and charge you for it, what's wrong with that.

If you sign a Contract, it stands to reason that you are obliged to honour it or face a penalty.

If you buy on the HP, you don't own it until the end of the Contract, either.

At the end of the Contract, you return the Item to it's Owner. You may buy it if you wish, the usual figure is one Month's Rental, but they will start by asking for more, of course.

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